Coronavirus

Economists are warning that covid-shy UK consumers could look be inclined to save more of their money over coming weeks and months, potentially jeopardising the UK's economic recovery.

Growth forecasts for the EU and Eurozone have been cut further by the European Commission, who have said the region's exit from lockdowns had been slower than anticipated in the second quarter.

The U.S. economy's sharp rebound from the slump of the covid-19 lockdown continues with the non-manufacturing sector roaring back to life in June, according to the ISM non-manufacturing index which was updated on Monday.

UK Prime Minister has confirmed the Government's furlough scheme - the flagship policy in its fiscal fight against the covid economic slump - won't be extended beyond October, but Capital Economics say the unemployment rate should be less than previously feared.

The UK economy is currently experiencing a v-shaped recovery, that should be reinforced by a surge in consumer spending when pubs and restaurants open up on July 04, says the Bank of England's Chief Economist Andy Haldane.

American consumer spending rose from reduced levels in May but the recovery was weaker than economists had hoped for and incomes fell after so-called stimulus cheques shrank last month. 

A key market theme at present is the question of whether or not a second spike in covid-19 infections is brewing, particularly in the U.S. where a number of states have are seeing infection rates rise markedly.

The UK's debt at the end of May 2020 was 100.9% of gross domestic product (GDP), the first time that debt as a percentage of GDP has exceeded 100% since the financial year ending March 1963, says the ONS.

Retail sales grew 12.0% month-on-month in May reports the ONS, a strong recovery on the previous month's slump of -18% and ahead of consensus estimates for a figure of 5.7% to be announced.

The UK added 6K jobs in the three months to April according to the ONS, which was a surprising result for a market that was anticipating a fall in employment to the tune of 83K.

The first official data showing the economic impact of the covid-19 lockdown crisis has been released, and the numbers are worse than economists had been expecting.

The coronavirus cost mounted further in early June as the bill for supporting companies topped two percent of GDP and the 'lockdown' used to contain the pneumonia-inducing disease reduced household spending by a fifth, threatening a double-digit blow to the economy for each month the crisis draws on. 

The Dollar jumped alongside U.S. equity futures Friday after official data showed a surprise surge in employment driving a steep fall in the jobless rate during, suggesting the American labour market began to recover promptly from the moment the economy began to reopen in May. 

There has been an increase in the number of companies considering laying off staff and freezing wages in order to safeguard working capital over coming months, according to the latest Lloyds Business Barometer.

Activity in the UK's prime property market - that is defined as the market for residential property with a value in excess of £1m - remains subdued, but prices appear to have found a floor.

The UK furlough scheme for employees and its equivalent for the self-employed are costing HM Treasury one percent of annual economic output per month, newly released figures showed this week, explaining concerns about the budget deficit as well as nascent and forthcoming government efforts to wind it down. 

The UK Government borrowed a staggering £62.1BN in April as it raced to support an economy brought to its knees by an enforced shutdown to stop the spread of covid-19.

The Eurozone economic recovery began in May with the gradual easing of 'lockdown' restrictions, IHS Markit surveys of purchasing managers in the manufacturing and services sectors suggested on Thursday, although the speed at which economies return to normal levels of output remains uncertain. 

The UK economy experienced a record breaking slump at the end of the first-quarter as the effort to contain the coronavirus closed down what is thought to be around a quarter of its production capacity, although the steepest falls in output are expected in the second quarter.